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Fix-and-Flip Home Loans Helps Drive Business At Cyclical Highs

July 19, 2023
Invest in and renovate properties for long-term rental or refinancing with the Fix and Flip Home Loan program from LendSure.

U.S. home sales volumes continue to decline—existing home sales were off 23% in April 2023 from a year earlier, according to the National Association of Realtors.

That’s largely because mortgage rates remain well above 6%, or twice where they were two years ago.

The housing market’s slowdown has brokers looking for ways to keep their pipelines full. One area of business that can be easily overlooked but should be a priority in today’s market is home flipping. According to ATTOM Data Solutions 2022 U.S. Home Flipping Report, 407,417 single-family homes, and condos in the United States were flipped in 2022. That was up 14% from 357,666 in 2021, and up 58% from 2020, to the highest point since 2005, ATTOM reports.

ATTOM’s study also found that the number of homes flipped by investors in 2022 totaled 8.4% of all home sales, the heftiest share since at least 2005. But it’s not all boom – even as fix-and-flip deals rose, gross profit margins on home flips in 2022 sank to their lowest level since 2008.

All of that means investors are looking for help. They need to finance deals and someone to partner with them through a transaction that carries inherent risk.

Enter LendSure’s Fix & Flip Home Loans. These loans are tailored for investors who want to leverage the purchase and renovation of a property. It’s a short-term loan, so our investor Fix & Flip solutions are created for entrepreneurs who intend to exit with the sale of the property or to refinance into a long-term rental DSCR loan.

The statistics show home flippers are still doing deals, and these clients are searching for an out-of-the-box solution for their unique needs. LendSure’s Fix & Flip Home Loans program offers up to 85% of the purchase price and up to 100% of the construction cost on some loans. The total loan amount is up to 85% of the total cost. In the interest of transparency, we offer this caveat: The program does not necessarily offer 85% and 100% of the construction cost on every transaction.

Here’s a common scenario: Say an investor pays $275,000 for a property and expects to spend $100,000 on renovations. LendSure would loan up to 85% of the acquisition costs, or $233,750, and up to 85% of the renovation costs, or up to $85,000. This video gives an overview.

We strive to deliver an answer on Fix & Flip applications within hours, not days. We work with clients with a credit score as low as 660, and our interest rates are competitive. We primarily service single-family and multifamily properties, but LendSure also considers mixed-use properties, on an exception basis.

It’s important for brokers and investors to work with a trusted lending partner. LendSure focuses on their best interests through a personalized, tailored approach. With LendSure’s Fix and Flip loan solution, you can connect with investors and help them diversify their Investors’ portfolios.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.

Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need in order to say “yes” to more of their clients.  This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense approach to lending?  Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.


Contact Us: (888) 707-7811